CALGARY, ALBERTA--(Marketwire - June 28, 2012) - Superior Plus Corp. (TSX:SPB) ("Superior" or the "Corporation") is pleased to announce that it will redeem the remaining $49,943,000 principal amount of its 5.75% convertible unsecured subordinated debentures (the "2012 Debentures") due December 31, 2012 in accordance with the indenture governing the 2012 Debentures on August 1, 2012 (the "Redemption Date").
The 2012 Debentures will be redeemed at the redemption price (the "Redemption Price") which is equal to the outstanding principal amount of the 2012 Debentures to be redeemed, together with all accrued and unpaid interest thereon up to the Redemption Date, being $1,005.0411 per $1,000 principal amount of 2012 Debentures. The 2012 Debentures will cease to bear interest from and after the Redemption Date. Superior will use funds from its existing credit facility to fund the redemption of the 2012 Debentures.
Pursuant to the terms of the Indenture governing the 2012 Debentures, holders of 2012 Debentures that are to be redeemed have the right until the last business day prior to the Redemption Date to convert their 2012 Debentures into common shares of Superior ("Common Shares") at a conversion price of $36.00, being a rate of approximately 27.7778 Common Shares per $1,000 principal amount of 2012 Debentures.
Wayne Bingham, Executive Vice-President and Chief Financial Officer stated "We are extremely pleased to provide the capital markets with certainty on the timing of the redemption of the remaining $49,943,000 2012 Debenture obligation. Superior remains committed to ensuring the strength of our balance sheet by continuing to focus on our debt reduction initiative. Superior continues to make excellent progress on reducing its total debt and is currently on track to meet its forecasted total debt to EBITDA leverage ratio range of 4.4X to 4.6X as provided in Superior's first quarter earnings release. Upon completion of this redemption, Superior will maintain approximately $250 million of unutilized capacity on its syndicated bank facility."
About the Corporation
Superior consists of three primary operating businesses: Energy Services includes the distribution of propane and distillates, providing fixed-price energy services, and supply portfolio management; Specialty Chemicals includes the manufacture and sale of specialty chemicals; and Construction Products Distribution includes the distribution of specialty construction products.
Forward Looking Information
Certain information included in this Press Release is forward-looking, within the meaning of applicable Canadian securities laws. Much of this information can be identified by looking for words such as "believe", "expects", "expected", "will", "intends", "projects", "anticipates", "estimates", "continues" or similar words. In particular, this press release includes forward looking information pertaining to the proposed redemption of Superior's 2012 Debentures, forecasted total debt leverage ratios and expected unutilized credit capacity. Superior believes the expectations reflected in such forward-looking information are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon.
Forward-looking information is based on current information and expectations that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated. Forward looking information contained in this press release is made as of the date hereof and is subject to change. The Corporation assumes no obligation to revise or update forward looking information to reflect new circumstances, except as required by law. Forward-looking information is provided for the purposes of providing information about management's current expectations and plans about the future. Reliance on such information may not be appropriate for other purposes, such as making investment decisions.